Cesspool phaseout in Rhode Island Questions and Answers
By Emilio DiSpirito Licensed RI Realtor & Real Estate Agent #S35582
The DiSpirito Team - HomeSmart Professionals - 501 Centerville Rd Warwick RI 02886
Emiliodiv@gmail.com - 401-359-2338
As Featured on:
25,000 Rhode Island households are affected with the 'cesspool phaseout' legislation that was passed last Summer. With the average cost of septic replacement being anywhere from $13,500 to $60,000 this is one of the hottest topics in Rhode Islander real estate!!
WHY?
Simple: Cesspools do not treat the waste but instead concentrate it all in one area. Cesspools are not environmentally friendly in areas of watershed. Waste leaches out into our rivers, lakes, streams, bay & drinking water supplies. The thought is by connecting to sewer (very limited areas of Rhode Island) or by abandoning the cesspool and replacing with an onsite waste water treatment system aka "septic system" which keeps solid wastes contained and allows non harmful liquids to be secreted back into the earth through a leach field, that our water will be less polluted.
So what is a cesspool?
A cesspool is a hole in the ground often times the earth around the septic is built up with field stone, brick or even a metal holding tank or with perforated concrete.
Example of a cesspool that will need to be replaced by a septic system in Rhode Island
How do I know if my sewage system is a cesspool?
If your home was built before 1970 and is not connected to sewer & your sewage system is original, its a good possibility that you have a cesspool. Please read explanation above. Please be cautious if you are doing a visual inspection of unit as for if the walls are giving out around the cesspool you could potentially fall in. The best thing to do would be to contact a reputable septic/cesspool inspector. The DiSpirito Team uses Scituate Cesspool, Inc. because they do not install new septic systems but only inspect, so you will always get an honest non-bias answer as to what you have and need as far as a onsite waste water treatment system.
What is an onsite waste water treatment system or OSWTS?
Also known as a septic system (various designs, speak with an installer to find out which is best for your property), these come in various makes and sizes. Depending on area's environmental sensitivity will depend on make and cost. Areas with high water tables and near water will be subject to extremely high costs of replacement.
Example of a properly installed septic system with leaching field
Are sewers available in all areas?
No. Sewers are only available in 19 select towns and cities in Rhode Island. Over 100 Million pounds of sewage is treated daily in Rhode Island. Click here for a full list of areas with seweage treatment centers.
How do I find out if my neighborhood has or will have sewers?
Contact your local town hall. Click here for the entire list of all 39 municipalities contact information in Rhode Island.
Do I have to replace my cesspool with a sewer connection or septic system when selling my house?
As of January 1, 2016 in the state of Rhode Island you have to abandon your cesspool and replace it with an adequate size septic system for the number of beds the town records show in your home. (Please see cesspool phaseout loopholes below)
How much will it cost?
Cost of a septic system design and install will vary upon water table and environmental reasons. If you are close to a body of water, you may have to have a "sandbox" installed which will need to be connected to a power supply with battery backup. Your electric bill will see an increase and you are looking between $20,000 and $60,000 to install one of these systems.
Under most circumstances, you can have a standard "galley system" installed for as little as $13,500 to $20,000 on the high end. Keep in mind cost goes up depending on how many bedrooms you will be supporting with the system.
In the absolute best case scenario, you can tie into sewer! The cost to do so is between $2,000 and $5,000 from what I've seen. Costs can be higher if you need a macerater / sewage pump placed on your property. This is when the sewage line is at a higher elevation than your sewage outlet. We have a list of three highly recommended professionals who can tie you into sewer if you wish. Shoot me an email, text or call for list in Rhode Island & Massachusetts. 401-359-2338 or emiliodiv@gmail.com when texting mention "sewage connection contractor".
IMPORTANT NOTE: If you have a three bed home and a septic system fit for a two bed home, your property will now be considered only a two bed and that will impact the value. Make sure you contact an experienced real estate professional before making any moves here. You can contact me directly at emiliodiv@gmail.com for any questions.
Call Emilio DiSpirito, Top Realtor in Rhode Island to discuss all your options before spending thousands on a cesspool abandonment and septic install 401-359-2338
Are there any loopholes ( exemptions ) to avoid cost of replacing cesspool with a septic system when selling?
YES! Here is the list of exceptions!
- If neighborhood has proposed sewers running through by 2020 and your cesspool is not failed? We are still waiting on clarification from the state on this one. Great question though!
- Exchange of property deed between spouses is an exemption from the cesspool legislation in Rhode Island
- When parents exchange property between children, you are exempt from the cesspool phaseout
- When a property is exchanged between full siblings in RI it is except from the cesspool phaseout legislation
- In the event the grantor transfers the real property to be held in an irrevocable or revocable trust, where at least 1 of the designated beneficiaries is of the 1st degree of relationship to the grantor.
Is the buyer or seller of real estate responsible for replacement when home sells?
You do not have to feel like this Call Emilio DiSpirito for up to date information on all your real estate questions 401-359-2338
Seller nor buyer is solely responsible for replacement cost of a cesspool. Within 12 months of property sale there must be a septic system installed on that property according to state law in Rhode Island. The issue with this is that certain mortgage programs like FHA (Federal Housing Administration insured loans), VA (Veterans Association inured loans), Rhode Island Housing and USDA (United States Department of Agriculture loan) mortgage programs have strict standards for this and your lender may require a working system in place or an install date booked and 150% of cost be held in escrow at time of closing if not completed. We suggest to speak with a lender who specializes in this. We have a list of three lenders you can speak with whom we have referred clients to that can help you out. Call/text for list 401-359-2338. If texting, mention "Cesspool Finance Question".
Here are a list of scenarios that can work out when selling or buying a home with a cesspool
- Seller to credit buyer for total cost of septic system off list price
- Buyer to borrow from a 203k mortgage program which allows borrower to mortgage up to $35,000 in repairs (or more if needed)
- Buyer to purchase property and pull out a "rehab" loan from local lending institution. Please make sure you have equity in your property if you are considering this.
- Seller or Buyer to seek private lending or gift from family member
- Seller to pay for cash before sale of home
- Buyer to seek financial assistance in the form of a low interest loan from municipality if available (limited availability in Rhode Island - there is no full list online from what we have seen as of yet. Call your local town hall for answer)
ATTENTION INVESTORS & HOME BUYERS LOOKING AT PURCHASING A FORECLOSURE or SHORTSALE:
Same rule applies with foreclosures & shortsales and often times your agent can negotiate having the bank cover charge.
Thank you for reading my blog! Please tune into my radio show, "The Round Table - Real Estate Simplified" every Sunday at 10 am from anywhere in the United States on iHeartradio.com or app and search for "whjj"! If you are in the RI or Southeastern MA areas, you can tune in via Newsradio 920 for more real estate market tips and information!
Host Emilio DiSpirito of "The Round Table Real Estate Simplified"
all information is deemed reliable but is not guaranteed. please speak with a real estate professional, or Emilio DiSpirito who is a licensed real estate professional for the most up to date information. You may also want to seek legal counsel with a real estate attorney. We suggest Melissa D'ellena out of East Greenwich RI.
Emiliodiv@gmail.com - 401-359-2338
25,000 Rhode Island households are affected with the 'cesspool phaseout' legislation that was passed last Summer. With the average cost of septic replacement being anywhere from $13,500 to $60,000 this is one of the hottest topics in Rhode Islander real estate!!
Simple: Cesspools do not treat the waste but instead concentrate it all in one area. Cesspools are not environmentally friendly in areas of watershed. Waste leaches out into our rivers, lakes, streams, bay & drinking water supplies. The thought is by connecting to sewer (very limited areas of Rhode Island) or by abandoning the cesspool and replacing with an onsite waste water treatment system aka "septic system" which keeps solid wastes contained and allows non harmful liquids to be secreted back into the earth through a leach field, that our water will be less polluted.
So what is a cesspool?
A cesspool is a hole in the ground often times the earth around the septic is built up with field stone, brick or even a metal holding tank or with perforated concrete.
 |
| Example of a cesspool that will need to be replaced by a septic system in Rhode Island |
If your home was built before 1970 and is not connected to sewer & your sewage system is original, its a good possibility that you have a cesspool. Please read explanation above. Please be cautious if you are doing a visual inspection of unit as for if the walls are giving out around the cesspool you could potentially fall in. The best thing to do would be to contact a reputable septic/cesspool inspector. The DiSpirito Team uses Scituate Cesspool, Inc. because they do not install new septic systems but only inspect, so you will always get an honest non-bias answer as to what you have and need as far as a onsite waste water treatment system.
What is an onsite waste water treatment system or OSWTS?
Also known as a septic system (various designs, speak with an installer to find out which is best for your property), these come in various makes and sizes. Depending on area's environmental sensitivity will depend on make and cost. Areas with high water tables and near water will be subject to extremely high costs of replacement.
 |
| Example of a properly installed septic system with leaching field |
No. Sewers are only available in 19 select towns and cities in Rhode Island. Over 100 Million pounds of sewage is treated daily in Rhode Island. Click here for a full list of areas with seweage treatment centers.
How do I find out if my neighborhood has or will have sewers?
Contact your local town hall. Click here for the entire list of all 39 municipalities contact information in Rhode Island.
Do I have to replace my cesspool with a sewer connection or septic system when selling my house?
As of January 1, 2016 in the state of Rhode Island you have to abandon your cesspool and replace it with an adequate size septic system for the number of beds the town records show in your home. (Please see cesspool phaseout loopholes below)
How much will it cost?
Cost of a septic system design and install will vary upon water table and environmental reasons. If you are close to a body of water, you may have to have a "sandbox" installed which will need to be connected to a power supply with battery backup. Your electric bill will see an increase and you are looking between $20,000 and $60,000 to install one of these systems.
Under most circumstances, you can have a standard "galley system" installed for as little as $13,500 to $20,000 on the high end. Keep in mind cost goes up depending on how many bedrooms you will be supporting with the system.
In the absolute best case scenario, you can tie into sewer! The cost to do so is between $2,000 and $5,000 from what I've seen. Costs can be higher if you need a macerater / sewage pump placed on your property. This is when the sewage line is at a higher elevation than your sewage outlet. We have a list of three highly recommended professionals who can tie you into sewer if you wish. Shoot me an email, text or call for list in Rhode Island & Massachusetts. 401-359-2338 or emiliodiv@gmail.com when texting mention "sewage connection contractor".
IMPORTANT NOTE: If you have a three bed home and a septic system fit for a two bed home, your property will now be considered only a two bed and that will impact the value. Make sure you contact an experienced real estate professional before making any moves here. You can contact me directly at emiliodiv@gmail.com for any questions.
 |
| Call Emilio DiSpirito, Top Realtor in Rhode Island to discuss all your options before spending thousands on a cesspool abandonment and septic install 401-359-2338 |
YES! Here is the list of exceptions!
- If neighborhood has proposed sewers running through by 2020 and your cesspool is not failed? We are still waiting on clarification from the state on this one. Great question though!
- Exchange of property deed between spouses is an exemption from the cesspool legislation in Rhode Island
- When parents exchange property between children, you are exempt from the cesspool phaseout
- When a property is exchanged between full siblings in RI it is except from the cesspool phaseout legislation
- In the event the grantor transfers the real property to be held in an irrevocable or revocable trust, where at least 1 of the designated beneficiaries is of the 1st degree of relationship to the grantor.
Is the buyer or seller of real estate responsible for replacement when home sells?
|
| You do not have to feel like this Call Emilio DiSpirito for up to date information on all your real estate questions 401-359-2338 |
Seller nor buyer is solely responsible for replacement cost of a cesspool. Within 12 months of property sale there must be a septic system installed on that property according to state law in Rhode Island. The issue with this is that certain mortgage programs like FHA (Federal Housing Administration insured loans), VA (Veterans Association inured loans), Rhode Island Housing and USDA (United States Department of Agriculture loan) mortgage programs have strict standards for this and your lender may require a working system in place or an install date booked and 150% of cost be held in escrow at time of closing if not completed. We suggest to speak with a lender who specializes in this. We have a list of three lenders you can speak with whom we have referred clients to that can help you out. Call/text for list 401-359-2338. If texting, mention "Cesspool Finance Question".
Here are a list of scenarios that can work out when selling or buying a home with a cesspool
- Seller to credit buyer for total cost of septic system off list price
- Buyer to borrow from a 203k mortgage program which allows borrower to mortgage up to $35,000 in repairs (or more if needed)
- Buyer to purchase property and pull out a "rehab" loan from local lending institution. Please make sure you have equity in your property if you are considering this.
- Seller or Buyer to seek private lending or gift from family member
- Seller to pay for cash before sale of home
- Buyer to seek financial assistance in the form of a low interest loan from municipality if available (limited availability in Rhode Island - there is no full list online from what we have seen as of yet. Call your local town hall for answer)
ATTENTION INVESTORS & HOME BUYERS LOOKING AT PURCHASING A FORECLOSURE or SHORTSALE:
Same rule applies with foreclosures & shortsales and often times your agent can negotiate having the bank cover charge.
Thank you for reading my blog! Please tune into my radio show, "The Round Table - Real Estate Simplified" every Sunday at 10 am from anywhere in the United States on iHeartradio.com or app and search for "whjj"! If you are in the RI or Southeastern MA areas, you can tune in via Newsradio 920 for more real estate market tips and information!
Thank you for reading my blog! Please tune into my radio show, "The Round Table - Real Estate Simplified" every Sunday at 10 am from anywhere in the United States on iHeartradio.com or app and search for "whjj"! If you are in the RI or Southeastern MA areas, you can tune in via Newsradio 920 for more real estate market tips and information!
 |
| Host Emilio DiSpirito of "The Round Table Real Estate Simplified" |
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